Journal of Management and Economics
35
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TYPE
Original Research
PAGE NO.
35-37
DOI
OPEN ACCESS
SUBMITED
25 November 2024
ACCEPTED
29 December 2024
PUBLISHED
30 January 2025
VOLUME
Vol.05 Issue01 2025
COPYRIGHT
© 2025 Original content from this work may be used under the terms
of the creative commons attributes 4.0 License.
Digitalization of Industry:
Status, Problems and
Prospects of The Sector
Radjabova Sarvinoz Alisherovna
Teacher of Tashkent University of Business and Science LLC, Uzbekistan
Abstract:
This article is devoted to the study of the
current state, current problems and prospects of the
process of digitization of industry. Digital technologies
serve as an important factor in increasing production
efficiency, efficient use of resources and the
introduction of innovative solutions in the industrial
sector. The article analyzes the technological,
infrastructure and personnel issues encountered in the
process of digitization of the Uzbek industry. At the
same time, the conditions and measures necessary for
the successful implementation of digitization, as well as
recommendations developed on the basis of
international experience, are presented.
Keywords:
Digitization of industry, technological
innovations, digital transformation, infrastructure,
production efficiency, personnel qualifications, digital
economy.
Introduction:
Industrial digitization is one of the main
directions of transformation of modern production. The
introduction of digital technologies plays an important
role in increasing the efficiency of industrial enterprises,
improving product quality and ensuring their
competitiveness. The transition to a digital economy
occupies a special place in the economic development
strategy of Uzbekistan. However, in this process there
are a number of urgent problems, such as overcoming
technological crises, improving personnel skills, and
developing infrastructure.
This article aims to study the current state and
prospects of industrial digitization, identify existing
problems and develop practical recommendations for
solving them. The article analyzes international
experience and successful examples of digital
transformation, and proposes urgent measures for the
development of Uzbek industry.
Main part
In the current era, the digital economy and a number of
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Journal of Management and Economics
related effective technologies, including e-commerce
and e-business, are rapidly entering our lives. That is
why, in order to further accelerate the development of
the state and society, the leadership of our republic
has adopted a number of important decisions. In his
Address to the Oliy Majlis of January 25, 2020, the
President of the Republic of Uzbekistan proposed to
name 2020 the “Year of Science, Enlightenment and
Development of the Digital Economy” for the
development of the digital economy in our country. In
addition, in order to implement the Decree of the
President of the Republic of Uzbekistan No. PF-5349
dated February 19, 2018 “On measures for the further
development of the sphere of information
technologies and communications” [1], as well as to
create conditions for the rapid development of
modern
information
technologies
for
the
implementation of the digital economy in the state
management system in our republic, as well as to
ensure information security, on August 31, 2018, the
Cabinet of Ministers adopted a Re
solution “On
additional measures for the introduction and further
development of the digital economy in the Republic of
Uzbekistan”, which defines the goals and objectives of
the digital economy, and the Resolution of the
President of the Republic of Uzbekistan No. PQ-3832
dated July 3, 2018 “On measures for the development
of the digital economy in the Republic of Uzbekistan”
can also be included in these measures.
The rapid development of digital technologies is
leading to fundamental changes not only in the
economy, but also in society itself. Thus, due to the
reduction of information costs, digital technologies
significantly reduce the cost of economic and social
transactions for the state, companies and individuals,
stimulate innovation, with transaction costs almost
zero, and also dramatically increase efficiency: existing
activities and services become cheaper, faster or more
convenient. Finally, digital technologies facilitate
integration: people can use services that were
previously unavailable [2].
The concept of enterprise digitization is associated
with the introduction of new technologies that have
become available to businesses in recent years: big
data analysis and machine learning, artificial
intelligence, robotics, the Internet of Things (IoT), 3D
printing, cloud computing. The prerequisites for the
development of digitization and the introduction of
digitalization were the decline in the cost of
technologies and computing power, as well as the
increase in the possibilities of high-speed data
transmission.
Digital technologies allow companies to analyze sales,
inventory, production capacity and operational
processes at a new level of granularity. This, in turn,
leads to qualitatively new conclusions regarding the
company's products, interactions with suppliers and
customers, and the organization of processes.
The digital transformation of an enterprise can be
considered from two perspectives. The first is business
model digitization - changing the model of interaction
with the customer, moving from traditional sales to a
“smart” product model, complemented by digital
services for the customer. The second - operational
digitization - is the introduction of digital tools to
improve the efficiency of the enterprise within the
framework of the existing business model. According to
a 2018 global survey, 95% of industry directors see
digital transformation as an opportunity to increase
efficiency and develop their business [3].
The introduction of digital tools into operational
activities allows companies to improve the quality of
their decisions and get the first results within the first
year. In particular, solutions based on IoT and big data
analytics play a key role in improving the efficiency of
production processes. They allow you to quickly collect
data on physical indicators and convert them into digital
data for further processing, exchange information
electronically throughout the value chain, and process
data using machine learning and artificial intelligence to
obtain qualitatively new conclusions. In addition, with
their help, you can remotely control the production
process and physical parameters of equipment based on
decisions made taking into account the results of in-
depth analysis.
By combining different technologies, enterprises
receive a set of tools that allow them to increase the
production of finished products, reduce the level of
rejection, reduce material consumption and increase
the availability of equipment.
The development of new technologies is changing entire
industries and individual enterprises. Competitive
digital transformation stages are putting pressure on
management. At the same time, digitalization requires
investments, so companies embarking on this path need
to define tactical and long-term transformation goals, a
roadmap and a business case.
According to research, to date, six out of ten industrial
enterprises in the world have a digital transformation
program. At the same time, a quarter of enterprises
have a program in place for less than 12 months, and the
majority (61%) plan to implement the existing program
within one to three years. However, these indicators
largely reflect the level of development of the largest
enterprises in the world - industry leaders [4].
However, leaders are currently at the stage of forming
the necessary digital competencies and implementing
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Journal of Management and Economics
pilot projects. 89% of the largest industrial companies
surveyed said they have launched pilot projects or
implemented solutions based on machine learning and
artificial intelligence within a limited process
perimeter. On average, only 12% of businesses in
Western Europe already use big data analytics.
For those who are not market leaders, new
technologies are still in the planning stages. Small and
medium-sized businesses lag behind large companies
not only in the implementation of digital technologies,
but also in traditional robotization and production
automation. The gap in the speed of implementation is
due to the difference in the availability of financial
resources, experience in implementing advanced
technologies and savings for large companies.
Internal opportunities for digitalization and additional
benefits allow companies to start moving towards
transformation. However, even with the necessary
resources, companies face internal resistance,
reluctance to change business processes and
difficulties in integrating "traditional" solutions. It is
important to remember that digital transformation of
enterprises is not about replacing all employees with
robots, but about empowering managers and workers
through new technologies. More than 60% of industry
leaders believe that digitalization will create additional
jobs, rather than reduce their number.
CONCLUSION
The process of digitalization of industry is of strategic
importance for increasing the competitiveness of the
Uzbek economy and ensuring its sustainable
development. The results of the study show that the
success of digitalization of industry largely depends on
the following factors:
It is important to create favorable
technological conditions for the introduction of
modern digital technologies. This requires, in
particular, ensuring a wide coverage of Internet
networks and data centers;
It is necessary to accelerate the process of
training specialists who can work in the digital
economy, understand modern technologies and apply
them;
The state should develop special programs to
support
innovative
projects
and
encourage
entrepreneurs and industrial enterprises to introduce
technologies;
Studying the successful experience of
developed countries in the field of digital
transformation and adapting it to local conditions will
help in implementing effective solutions.
At the same time, by systematically eliminating the
problems highlighted in the article, it is possible to
accelerate the process of digitization of Uzbek industry
and strengthen its position in the global economy.
Digitization allows industrial enterprises to transition to
an innovative management model, rational use of
resources and improve product quality. Proper
management of this process will serve the rapid
development of the national economy.
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